With regards to the latest ruling by the GST Council mandating a taxation rate of 28% on online gaming services, Nazara Technologies—a distinguished entity renowned for its expertise in both gaming and esports—confidently states that it foresees minimal impact. Notably, this prescribed taxation measure concerns specifically skill-based real money gaming activities—a sector representing merely a modest fraction within Nazara Technologies’ comprehensive revenue structure. Assuring its dedication to upholding proactive measures, the company is steadfast in its resolve to effectively neutralize any plausible repercussions stemming from this regulatory adjustment.
Nazara Technologies anticipates minimal repercussions from the recent decision of the GST Council to impose a 28 percent goods and services tax on online gaming, as stated on July 12.
The diversified gaming and esports company clarified that the tax will exclusively apply to the skill-based real money gaming segment, which accounted for a modest 5.2 percent of its FY23 revenue. Nazara Technologies further assured that it would proactively take measures to mitigate any potential impact on this segment.
In the 50th GST (Goods and Services Tax) Council Meeting, held on July 11, the Group of Ministers (GoM) unanimously agreed to levy a 28 percent GST on the entire value of online gaming, including horse racing and casinos, without distinguishing between games of skill and chance, according to Finance Minister Nirmala Sitharaman.
Currently, Nazara Technologies operates platforms such as Classic Rummy (offering online rummy) and Halaplay (providing online fantasy sports) in this domain.
Notably, Nazara Technologies’ founder, Nitish Mittersain, expressed their intention in May 2023 to expand their presence in the real-money gaming industry, following the emergence of regulatory clarity through MeitY’s online gaming regulations and the new income tax guidelines on TDS. Mittersain highlighted that the remaining significant hurdle in real-money gaming appears to be obtaining clarity on GST.
